Category Archives: Welfare Reform

It is hard to imagine a more poisonous piece of legislation than the lowered Benefit Cap, set to be introduced this Autumn, which will plunge quarter of a million children into desperate housing insecurity and possible homelessness.

This will be the third time that the Benefit Cap – which limits the weekly amount that can be received in benefits – has been lowered in just five years. In 2011 George Osborne capped Housing Benefit in a sweeping move which made much of central London unaffordable for those unable to work due to childcare responsibilities, sickness or unemployment. Then in 2013 benefits were capped further, at £500 a week for a family with children, extending the problem of unaffordability out to Greater London, the Home Counties and beyond, with many large cities seeing families affected. And now the cap is to be lowered again, to around £440 a week in London and £384 elsewhere.

On average this means families set to lose £60 a week according to an Impact Assessment published by the DWP last week and it will no longer be just a London problem. Leeds, Cardiff, Manchester, Glasgow and Bradford are all likely to have at least 1000 households affected whilst in Birmingham 3,900 households will face an abrupt cut in housing benefits. It is not the fault of struggling families that rents in the UK have soared out of reach in many areas which has led to the growing Housing Benefit bill. It is the result a failure to build enough low cost housing. But it is the poor who will pay.

The government claim the Benefit Cap has been a huge success, pointing to a series of evaluations that showed a small rise in the number of people subject to the cap who found work. But behind these celebratory statistics lies a bitter truth. It has become common, in evaluations of DWP policy, to use ‘job outcomes’ to justify any atrocity. Someone hangs themselves after being found fit for work and having their benefits stopped – well this is just fine because someone else got a job in Poundland. No other social policies would be evaluated this way. It is like testing a new drug and completely ignoring deadly side effects on the basis that a handful of people’s health had slightly improved.

With families facing eviction due to the Benefit Cap it has indeed forced many to desperately look for any job they can find. Those able to find between work, of between 16 and 30 hours a week depending on their circumstances, become exempt from the cap leading many to hound their employers for more hours, often unsuccessfully.

For the 18% of claimants affected by the Benefit Cap who are long term sick or disabled this of course has not been an option. Despite repeated lies from DWP ministers that disabled people are not affected by the cap this only applies to those with the most serious health conditions or disabilities. Claimants of the sickness and disability benefit Employment Support Allowance are not exempt from the cap if health assessors decide their condition may improve in the future. Many claimants are battling ill health as well as facing the prospect of losing their homes.

Neither is simply finding a job a realistic solution for those with very young children, or even babies. This hasn’t stopped many local councils simply shrugging off the upcoming trauma faced by those with young children who face losing their homes.

What the interviews with claimants do seem to suggest is that if the cap has had any impact at all, it has been to encourage lone parents to seek work before they felt their children were ready to be left alone.

These were parents who intended to go back to work anyway. Others have had dreams of furthering their education shattered by the cap.

Sometimes it has not been the claimant themselves who was affected.

Rarely has government policy had such a devastating impact on children’s lives. Behind the lauded ‘job outcomes’ lies a trail of destitution. Countless families have reported being left without enough money for food. Huge numbers are in rent arrears. Many have been forced to move – at the time of the most recent evaluation 10% of households had moved house due to the cap. These evaluations were carried in 2014 however, meaning many families covered by the reports would have only been subject to the cap for a short period. The growing rise in homeless families, especially in London, points to the devastating long term impact of the Benefit Cap.

Punishing children with homelessness because of the eye-watering rents demanded by landlords is a new low for even the Tory Party, but it is the upcoming lowering of the cap which will perhaps inflict the greatest cruelty. According to last week’s impact assessment, “those already capped at £26,000 will have the new, lower, cap applied to them.” This is estimated to be around 22,000 households. These are families that may have already moved to a cheaper area and are just starting to get their lives back on track. They are the families featured in the quotes that accompany this piece. Some of the poorest people in the UK, already struggling to survive and raise their children.

And now the government is coming for them again. Imagine explaining to a young child just settling into a new school, who may have recently faced a spell in temporary housing that they now have to go through it all again. A child just starting to make friends to replace the ones they lost due to the last forced relocation will now be looking at a future in yet another new school, or even another new city.

Most of those facing the Benefit Cap are women, usually lone parents. Black and Ethnic Minority families are hugely over-represented amongst those affected, as are disabled people. For those unable to find work or increase their hours their options are stark. Many have only been able to stay in their homes due to Discretionary Housing Payments (DHPs) paid by local authorities to families facing imminent homelessness. These payments will not last forever and are increasingly being used to meet the cost of housing families in temporary accommodation. A recent homelessness update from Westminster Council (H/t @nearlylegal) showed that around half of the borough’s spend on DHP’s is paying for temporary accommodation for those made homeless due to the benefit cap. It is only now that Local Authorities are starting to feel the impact of the Benefit Cap introduced in 2013. With a new further cut set to pile on the pressure even further homelessness amongst those with children could soar to levels not seen in generations in the UK.

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Apologies for the lack of posts recently. Back very soon, in the meantime this is from Disabled People Against Cuts (DPAC) and gives details of the upcoming week of action to coincide with the Paralympic Games. Please spread the word and get involved if you can.

DPAC Week of Action- September 4th-10th

Sunday September 4th pop-up art action – if anyone wants to take part in this please email us at mail@dpac.uk.net as further information will not be made public. This will go live on-line at 2pm

Monday September 5th Independent Living Day. Lobby and report in parliament following the horrendous cuts to care and support funding for personal assistance following the closure of the Independent Living Fund in 2015. Committee Room 21 from 2-4pm. Please allow about 20- 30 minutes to get through security

Afterwards 5pm at College Green opposite parliament for fun and festivities DPAC-style.

Thursday September 8th An online day of action for all. More details will be published on website nearer the time.

Saturday September 10th International Conference, Resistance:Beyond Borders from 10.30am-4.30 pm at Resource for London, 356 Holloway Rd, London N7 6PA.
Speakers from Ontario Coalition Against Poverty, Greece, Ireland and Germany.
See Conference 10th Sept Disabled Peoples’ Resistance: building beyond borders
To book a place please email us at mail@dpac.uk.net and give details of any access and dietary needs. Limited places available.

Minister for Welfare Reform Lord Fraud could do with some budgeting support himself after his recent trial to help benefit claimants manage their money proved to be an embarrassing flop that squandered £4 million of tax payer’s money.

Under Universal Credit all benefits will have to be claimed online, despite many claimants having no access to the internet and some having no experience of using computers. Benefit payments are also to be made monthly and there is a minimum five week waiting period for new claims. For the small group of claimants transferred onto the new system this in particular is already causing desperate suffering – a recent evaluation found that almost half of Universal Credit claimants were in rent arrears.

This was not supposed to be a problem according to comedy toff Lord Fraud who is over-seeing much of the introduction of Universal Credit. A new budgeting support scheme would be set up to help the so-called vulnerable manage their money and teach them to use a computer. Several trials were established to test how this scheme, named Universal Support, would be supplied. These trials cost just over £4 million and the results are bleak. An evaluation of the pilots published today found that Universal Support had “no statistically significant impact on either digital or financial capability.”

Perhaps the biggest flaw in this scheme to help those on Universal Credit manage their finances was that those involved in the trial were not on Universal Credit. The areas in which the pilots were carried out did not include those places where Universal Credit has been introduced. So what these trials really tested was the impact of Universal Support on people claiming benefits that are being phased out such as Jobseeker’s Allowance. This meant that the pilots had to sort of pretend that participants were about to claim Universal Credit when they weren’t. According to the evaluation this presented a significant barrier to people wishing to take up the support, which was offered by local councils, advice agencies and Jobcentres. As one support workers involved in the trial said “Trying to get them to understand a system that’s not in place that may or may not apply to them at any given time is not very easy to do .”

Some Jobcentres of course managed to find a way round this reluctance amongst claimants to take part in the trials. In a chilling example of how Jobcentre Work Coaches mislead and coerce claimants the evaluation reported that “Carmarthenshire and Dundee both reported that it was easier to encourage claimants to engage through Jobcentre Plus because they thought that the support was part of their Claimant Commitment.”Several participants in the trials said they only took part because they thought it was mandatory. In truth it was only in Islington that those carrying out the trial had the power to mandate claimants to attend under the threat of benefit sanction.

In the end just over half of those (51%) referred to Universal Support chose not to take it up. Amongst those that did two key problems emerged which point to a worrying future. The first impacted on those requiring help with using computers. Both staff and participants involved in the trials said that many claimants depend on mobile phone for internet access, with one reporting “‘I would say the majority of the people we see have a mobile but many of them (a) can’t use it or (b) can’t pay for their broadband connection or (c) can’t pay it, don’t have the money to pay for a call or don’t have one at all.” A further problem was that in more rural areas internet access is still limited and superfast broadband is rare. Universal Credit is set to be ‘digital by default’. If claimants cannot access the internet then they will not be able to manage their claim.

The second problem emerged amongst claimants accessing budgeting support. The evaluation found that the most significant problem facing this group was not that they needed help learning to budget but simply that they didn’t have enough money. As one person involved in managing the scheme said “It’s not a capacity issue in terms of actually being able to do the sums or being able to understand when to pay what when…what comes out is actually they just don’t have enough money to get from one of the months to the other.”

The evaluation does report that there were some ‘soft outcomes’ as a result of attending the scheme, with some claimants reporting a positive impact in areas of their lives which were unconnected to budgeting or computer skills. This may reflect the fact many of the scheme were run as part of a wider package of support which also looked into areas such as housing, health, and of course employability. The results of the overall evaluation of the scheme however found it made no difference in people’s ability to access IT or manage their money – although the researchers caution that only the short term effects of the scheme could be studied so far. A cost/benefit analysis of the trial therefore showed that the £4 million spent on Universal Support was squandered, with no demonstrable benefits either to the public or the claimants themselves.

Just over 4000 people were referred onto Universal Support and actually took up the offer and engaged with services. Many of them faced significant financial hardship and debt. If Lord Fraud had better budgeting skills then he could have used that £4 million to chuck everybody a grand and actually give them some real help for a change. But help is the last thing you can expect from a social security system devised by a former banker who has never been elected to anything. Of course this will never affect Lord Fraud himself, who is a very rich man. So the next time he wants to inflict a half-baked vanity scheme on benefit claimants he should fucking pay for it himself.

Disabled people have called a day of action against notoriously crap Capita on July 13th

Vital benefits – designed to meet the additional costs of living with a disability – have been stripped away completely from over 120,00 people DWP statistics revealed this week.

Over a quarter of those previously claiming Disability Living Allowance (DLA) have lost their benefits after being re-assessed by a private company as no longer having sufficient care or mobility needs to qualify for help. Savage new benefit eligibility tests have been introduced as part of the switch to Personal Independence Payments (PIP), which is gradually replacing DLA. So far 27% of those facing this re-assessment have lost their benefit with hundreds of thousands of people still to be tested. Originally the government claimed 20% of people would lose their benefits due to the change-over. Chillingly it now appears it could be much worse. For newly disabled people the situation is even more dire, with only 48% of new claims for PIP being successful.

“ATOS and Capita are making a killing from conducting sham PIP assessments which are seeing thousands of legitimate claimants having their benefits reduced, their incomes slashed and their motorbility cars removed.”

It is time to up the struggle and to demand that the corporate assessors #DoNoHarm”

Imagine if there was a law that prevented the rich from leaving luxury properties empty as investments. Even better, imagine if this law ensured that if a home was left vacant for over six months then local authorities could take over the management of the property and use it as part of their own housing stock to provide temporary accommodation for homeless people. That would be a good fucking law, and that’s a rare thing. And it is a law that the Labour Party accidentally introduced, although their target was not the rich, but squatters and those they claimed were involved in anti-social behaviour.

Empty Dwelling Management Orders (EDMOs) came into effect in 2006 to tackles the problem of empty homes which the government said were “magnets for vandals, drug users, squatters and even arsonists”. They operated exactly as described above, with powers for councils to take over vacant properties and rent them out to those waiting for permanent housing. Of course this being Tony Blair’s Labour Party the new powers were awash with bureacracy and caveats to protect the rich. Second homes were to be sadly exempt from the legislation, as were many other empty properties such as holiday homes. Councils would have to make legthy application to a tribunal and property owners were given wide-ranging rights of appeal. This didn’t stop the right wing press going into meltdown over the legislation with The Sunday Times declaring Britain had become a communist country.

In the end just 43 EDMOs were issued between 2006 and 2010. The great expropriation had not happened and the rich continued to horde land and housing as much as ever. This didn’t stop Eric Pickles rushing to change the laws within months of the Tory’s stealing power in 2010.

Pickles, who was Communities Secretary at the time, announced in early 2011 that he was bringing to an end these ‘heavy handed’ rules. This news was barely reported at the time. Now EDMOs can only be issued if a property has been empty for over two years, and more importantly only when local councils can prove the property is being used for anti-social purposes. Pickles said he did this to protect civil liberties.

There seems little doubt that EDMOs could have been issued against rich investors who buy up luxury properties and leave them empty – a phenomena that is now extending to other cities besides London. It would have been difficult, and might not have worked – oligarchs have good lawyers – but it would have been worth a try for an imaginative local authority facing growing homelessness. But now that option has been shut down, to protect the civil liberties of the global super rich who see the booming housing market in the South East as nothing more than an exclusive casino where they always get to win. And so the number of empty homes in London is now back on the rise despite a desperate housing crisis and record numbers sleeping on the streets. That’s what this government calls freedom.

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London’s housing crisis is set to escalate even further as figures show the construction of new socially rented homes in the capital is collapsing.

Statistics from the Department of Communities and Local Government reveal that the number of new socially-rented homes that began to be constructed in the city fell below 5000 in the most recent year for the first time in over a decade. There were just 4,790 new social home-build starts in 2015/16 compared to 7,860 in 2010/11. London’s population soared by around half a million in that period.

The figures for the most recent quarter are especially troubling, recording just 660 new starts in the latest period, a fall from over 2000 in the first quarter of 2015/16.

As alarming as these statistics are, they only tell half the story. Many of these new homes will be ‘affordable’ rather than priced at social rents. This means that rents could be as high as 80% of those in the local private sector, whilst they may also be let on fixed five years tenancies. Some local authorities are now prioritising these homes for what they call ‘key workers’ – meaning teachers, coppers and social workers. This is not social housing in a form that anyone would recognise.

Astonishingly London borough’s are also selling off social housing stock leading to a loss of 4000 homes in 2014/15, many due to Right To Buy. The London Borough of Hammersmith & Fulham flogged 418 social houses between 2010 and 2015 and replaced them with just 170 new homes. Construction did not begin on one single socially rented home in this borough in 2015/16, and the same applies to Kingston Upon Thames, Harrow and the City of London.

Homelessness is soaring in the capital with the number of people sleeping on the streets at record levels. Appallingly the number of empty homes has also hit a seven year high, no doubt due to luxury flats being built as investments and then left unused. And what are our elected officials doing about this crisis? If they were doing fuck all that would be bad enough. The truth is most of them, Labour or Tory, are making things worse.

Next week will see Labour councillors joining the the Tory Housing Minister Brandon Lewis to suck up to property developers and estate agents at the London Real Estate Forum. The event is backed by the new Mayor of London Sadiq Khan and is being held in Mayfair – the multi-millionaire’s ghetto where the rich live in total isolation of the chaos they are creating in the lives of many Londoners. They will not be there to discuss growing homelessness, soaring rents or the demise of social housing. Instead they will be discussing how to further lines their pockets from the carnage. Every fucking vulture in the world has their eyes on London’s last remaining social housing estates. Deals will be done, the right people paid off, and our communities will be smashed up even further. It is vital that these parasites are opposed.

Some things need nippng in the bud. So here’s a long and probably quite boring explanation of why Dave Hill’s recent claims in the Guardian that social cleansing is not taking place in London are a load of bollocks.

Hill based his recent piece on research carried out by the New Policy Institute think tank which examined the number of moves made by housing benefits claimants both within the capital and from London to other parts of the UK. It found that the number of London claimants who moved house has changed little between 2010 and 2015. As such the report’s authors conclude that housing benefit cuts have not caused the social cleansing of the city that many feared.

This led the Hill to declare that we should forget about social cleansing and instead focus on the poverty that has been caused by housing benefit cuts, saying that households had not been forced out of London but were staying put and making up rent shortfalls themselves. To some extent this is true, many Londoners are now living in desperate poverty due to soaring rents and benefit cuts. But to dismiss social cleansing, on the basis of this report, is a big mistake.

The first significant error in this research is that it examined all of those on housing benefit, not just those in the private sector. Almost 70% of London housing benefit claimants are in social housing and unlikely to be subject to the benefit cap due to much lower rents.* This means that large chunks of their data could be meaningless when analysing the impact of cuts on private sector tenants – and they don’t know which chunks.

There are many reasons why tenants might not move in such a brutal housing market. With the number of London landlords who will accept those claiming housing benefits growing ever smaller, the sensible thing to do if you have found somewhere is to stay put. Some social housing tenants may be hoping to buy eventually – especially now that right-to-buy is being extended to Housing Association properties. This could impact on the number of social housing transfers to outside the capital. These factors would both offset any exodus due to benefit cuts. But these assumptions, like the conclusions of the report, are speculation.

A further error in the research is that it treated claimants as one never-changing mass rather than examining flows on and off benefits. This means that if someone comes off housing benefits as a result of moving to a cheaper area they will not be included in the figures. The report fails to show whether the number of private sector Housing Benefit claimants is falling or rising in any given area. This leaves the question of whether people moving are being replaced by someone in similar economic circumstances. You would expect this if the number of poor people was not decreasing overall as the researchers claim and you can find out by looking at the Housing Benefit caseload statistics. They tell a very different story to the one told by the New Policy Institute.

The social cleansing of London did not begin when the Tory government first stole power in 2010. Gentrification had already hollowed out much of inner London with both rents and house prices soaring even in once largely working class areas such as Hackney and Lambeth. In more prosperous boroughs the eradication of the poor was almost complete except for those in social housing. There were just 7,790 private sector Housing Benefit claimants in the City of Westminster in 2010 – and Westminster is big, with a population almost as large as Hull and with areas which would not have been described even as middle class a couple of decades ago.

According to the most recent figures, the number of Housing Benefit claimants in Westminster now stands at 5,001, a drop of over a third since 2010. This trend is repeated throughout inner London – both the boroughs of Kensington & Chelsea and Islington have also lost around a third of private sector housing benefit claimants. In Camden, Hammersmith & Fulham and Southwark the number has dropped by around 20%, whilst Lewisham, Lambeth, Wandsworth and Tower Hamlets have all seen over 10% of private sector housing benefit claimants disappear. In the largely uninhabited City of London there were 100 private sector housing benefit claimants in 2010 and now there is only 20. The only inner London borough during the period to see a rise in this claimant group was Newham, by far the poorest and the least central borough. In total there are over 11,000 less private sector housing benefit claimants in inner London since 2010, and there weren’t many to start with. In many ways the Benefit Cap was simply a mopping up exercise, driving out the hangers-on that gentrification hadn’t yet managed to displace.

Despite plummeting number of private rented sector claimants in inner London the reverse is taking place further afield. Almost every outer London borough saw a rise in the number of private sector Housing Benefit claimants between 2010 and 2016, with only Waltham Forest, Merton and Richmond seeing a fall – and the last two are both posh. The main reason for this is soaring rents and a huge rise in the number of people in work who are claiming Housing Benefit. The overall number of Greater London Housing Benefit claimants, including social tenants, is higher now than in 2010 despite falling unemployment. The overall number of inner London claimants has fallen however.

The trend is plain to see. The richer and more central a borough is, then the more likely it will have seen a drop in the number of private sector housing benefit claimants. In outer boroughs the opposite is happening. London’s poor are being displaced to the margins

In some boroughs, such as Westminster, the process of social cleansing is near complete for almost all those without social housing. And for those clinging on the situation is chilling. Westminster spent around £3 million on Discretionary Housing Payments in 2014/15 specifically to mitigate the impact of the Benefit Cap. Assuming an average award of £50 a week – and this is a guess, there are no available figures – that’s enough to pay for over 1,000 of Westminster’s dwindling private sector claimants to remain in their homes. These are emergency payments, which can be withdrawn at any time, and will eventually stop. These households have simply been given a stay of execution.

In addition to this Westminster has 2,435 households who are homeless and in temporary accommodation. Around half of this number have been relocated outside the borough. Those still in Westminster will be in some form of private accomodation, whether that’s a hostel, B&B or in a temporary placement with a private landlord. They are also likely to be claiming Housing Benefit. So of Westminster’s 5000 private sector Housng Benefit claimants up to a quarter could be homeless, and possibly another fifth are receiving Discretionary Housing Payments which will eventually be stopped.

The Benefit Cap is just one, very small part of what is driving social cleansing. London’s failure to build enough social housing is also displacing the poor from the capital. Despite a population increase across Greater London of almost half a million between 2010 and 2014, the number of new social houses was just 7,455. Housing stock estimates from the Department of Communities and Local Government show that Islington, Camden, Kensington & Chelsea, Wesminster and the City of London have all seen a reduction in the number of socially rented homes since 2010. As numerous campaigners around the capital will tell you, they are now coming for the housing estates as well.

It seems astonishing that there would be those who refute that London’s poor are being gradually forced out of the city when the evidence is so visible. Take a walk round Hackney and you will see streets that have been not just socially, but also ethnically cleansed. This is not to undermine the sufffering of those still living in the capital who have been forced into poverty and destitution. That is part of social cleansing too, as the poor are sliced out of civic, economic and social life, even if they manage to cling onto their homes. Those that are left become as invisible as the departed. With further benefit cuts on the way and the near eradication of social housing it is irresponsible, and just plain inaccurate to deny what is taking place.

*this post was corrected on 28/5/16 due to previously saying social housing tenants are exempt from the Benefit Cap. This was a daft mistake, they are not exempt, but due to much lower rents in social housing then very few claimants are affected. H/T @nearlylegal who pointed it out.

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